BXSL - Better Buy For Retiring With Dividends In April 2024: BDCs Or REITs
2024-04-03 07:15:00 ET
Summary
- Dividends are a great way to fund a retirement.
- Equity REITs and BDCs are popular choices for retirees seeking dividend income due to their attractive yields and stable cash flows.
- We compare REITs and BDCs, and share which we think is the better choice for retiring with dividends in April 2024.
- We also share some of our top REIT and BDC retiree picks of the moment.
Dividends make for a great way to fund a retirement for the following reasons:
- Fully covering living expenses with passive income from dividends makes for easier budgeting, since you know exactly what your investment income will be for a given period of time.
- Following this approach also can lead to enhanced peace of mind during periods of market volatility since dividend payouts are much less volatile than stock prices, reducing the sequence of returns risk.
- Focusing on the dividend passive income that stocks generate can help you avoid chasing hot stocks and way overpaying for companies that may not even be all that profitable. Instead, you are investing for the dividend income stream that a stock will provide you with for years to come, helping to guard against overpaying for a stock.